Psystar Financials Don't Reveal Deep Pocket Company

By Jeff Gamet

Jun 4th, 2009 10:51 AM EDT

Financial records Psystar filed in its bankruptcy case show the company was faced with steep legal fees, but didn't reveal that other companies where funding its court costs. The company found itself on the wrong end of an Apple law suit for selling PCs with Mac OS X installed, and many have been speculating that other companies were funding Psystar's legal defense.

According to documents filed in its bankruptcy case, Psystar owes the law firm of Carr & Ferrell over US$88,000. It also owes $6,800 to Judicial Arbitration and Mediation Services, the mediation firm the company used to try to negotiate a resolution in its legal battle with Apple. All told, the company owes nearly $95,000 in legal fees.

Psystar also owes FedEx $8,000, DHL $12,700, and about $12,000 in back taxes. Along with its legal, shipping and tax debts, company CEO Rudy Pedraza floated Psystar a $120,000 loan, bringing the total up near $260,000.

What isn't evident in the documents, however, are the names of any companies that could have been funding Psystar's defense against Apple. Many have speculated that without outside assistance, Psystar couldn't have come up with the money to pay its legal expenses.

If outside backers were funding Pystar's legal battle, they presumably were hoping the company would win and essentially break Apple's control over the hardware Mac OS X can be installed on without violating user licensing agreements.

While it's possible that Psystar found a way to hide the backers speculators have been assuming were funding the company, the company's required bankruptcy documents appear to make it more likely that the company simply burned through its own nest egg.